asked the Minister for Finance if he is aware of public disquiet that the turnover tax will be used to increase prices of workers' needs by considerably more than two-and-a-half per cent; and whether, as such a development must lead to inflation and create a grave danger to the country's economic wellbeing, he will make a statement as to what plans, if any, the Government have in mind to prevent such profiteering at the expense of the consuming public.
Ceisteanna—Questions. Oral Answers. - Prevention of Profiteering.
37.
While there may be some variation in the increases in the prices of different commodities as a result of the introduction of the turnover tax, the over-all increase in the general level of prices attributable to the tax should not exceed 2½ per cent. It may be that price levels will fluctuate for a short time while the turnover tax is being brought into operation, but thereafter the force of free competition should keep the general level at about 2½ per cent of the pre-tax level, except in so far as price changes unrelated to the tax may occur, for example coal, tea or other commodities, due to a rise in production costs or market prices abroad.
The Minister for Industry and Commerce has certain powers of price control under the Prices Act, 1958 and he indicated in reply to questions in the House on 17th July, 1963 that if circumstances should require any action under that Act he would take it.
Is the Minister aware of the fact that recently it was reported in the public press that at a meeting of traders in a certain part of the country they proposed to increase the price of essentials which have to be bought as from 1st November on an average of from 6 per cent to 7 per cent? What will he do if that becomes a general tendency after 1st November, as there is every indication that it will? What is the Minister doing about the prices which, obviously, have now been raised in anticipation of the turnover tax? What is he doing to help the people of Ballyfermot and surrounding districts who have to pay this increase in the cost of living because of this turnover tax? What does he propose to do?
The Minister for Industry and Commerce had better deal with that.
There is no use in asking questions if they will not be answered.